Yet Another Disappointing Jobs Report

Somehow, one just doesn’t grow used to these kinds of stories:

U.S. employers kept their pace of hiring steady in December, falling short of the levels needed to bring down a still lofty unemployment rate and pointing to lackluster economic growth in 2013.

Other data on Friday gave stronger signals on the health of the economy, with the U.S. service sector activity expanding the most in 10 months.

Payrolls, excluding farm jobs, grew by 155,000 last month, the Labor Department said. That was a touch more than analysts’ expectations and only slightly below the revised gain of 161,000 reported for November.

The jobless rate was steady at 7.8 percent.

While firms kept on hiring despite the uncertainties raised by a budget stand-off in Washington, the report reinforced expectations of 2 percent economic growth this year.

Such slow growth is unlikely to quickly bring down the unemployment rate and probably will not make the U.S. Federal Reserve rethink its stimulus plan anytime soon despite growing unease among some policymakers over its bond-buying program.

“The U.S. economy is just muddling through,” said Tom di Galoma, managing director at Navigate Advisors in Stamford, Connecticut.

More here; not for the faint of heart. Bear in mind that health care “reform” and tax increases on the non-rich will further add to the drag on the employment market.

Happy Friday.

  1. Copperfield

    Full analysis right here on Ricochet. 

  2. Eeyore

    “Happy Friday.”

    Thanks, Pejman. As a member of the about-to-hit-the-boulders-at-bottom-of-the-fiscal-cliff U6 underemployed, these things always cheer me up. As they have ever since about 7pm on Nov 6.

  3. Fake John Galt

    For an Obama economy this is a great report. If George Bush was in office well it would be bad, but the joy about Obama is that these things don’t matter anymore. I am not sure why they even put them together except maybe as a jobs program.

  4. Pejman Yousefzadeh
    C

    It’s about the only jobs program we have going.

    Fake John Galt: For an Obama economy this is a great report. If George Bush was in office well it would be bad, but the joy about Obama is that these things don’t matter anymore. I am not sure why they even put them together except maybe as a jobs program. · 15 hours ago